Silver prices fell on Friday after the United States stopped short of imposing import tariffs on critical minerals, removing a key near-term catalyst that had fueled a sharp rally. Even after the pullback, silver remained up more than 14% for the week, reflecting continued demand for precious metals.
The white metal dropped as much as 3.1% in Asian trading, following a modest decline in the previous session. Prices retreated after President Donald Trump declined to introduce tariffs on minerals, including silver and platinum, while leaving open the possibility of doing so later.
Gold also edged lower. Futures slipped 0.2%, while platinum and palladium each fell around 3%. The Bloomberg Dollar Spot Index moved slightly lower.
Tariff pause triggers profit-taking
The prospect of U.S. import levies had been one of several drivers behind silver’s rapid rise. Traders and industrial users had rushed to secure supplies, pushing prices to successive record highs.
Despite Friday’s drop, analysts see the tariff pause as a temporary setback rather than a shift in direction.
The unpredictable nature of Trump’s policymaking “suggests that the practice of keeping metal onshore in the U.S. to back short futures positions is likely to persist,” consultancy Metals Focus said in a note.
Silver has tripled in value over the past year and is up more than 25% in 2026, supported by strong investor positioning and tight market conditions.
Debasement trade lifts precious metals
The rally in silver and gold has been part of a broader move into commodities, often described as the debasement trade. Investors are rotating away from currencies and government bonds amid concerns about rising public debt and fiscal strain.
Precious metals have also benefited from heightened political risk. Prices have climbed alongside Trump’s increasingly aggressive foreign policy stance and renewed attacks on the Federal Reserve.
The U.S. Justice Department has threatened Federal Reserve Chair Jerome Powell with a criminal indictment, raising concerns about the central bank’s independence. Analysts say any weakening of the Fed’s ability to control inflation would pressure the dollar and Treasuries, making gold and silver more attractive as hedges.
Supply response remains constrained
High silver prices typically encourage recycling, which can increase scrap supply. Metals Focus said elevated price levels are already prompting more recycling activity.
However, the consultancy noted that a lack of high-grade refining capacity has slowed the return of recycled metal to the market, limiting how quickly additional supply can ease price pressures.
